Risen, Inc. has a beginning inventory of $16 which consists of 2 units at $8 each. It purchased 10 units at $10 each. It sold 5 units for $20 each. Which would result in the higher Gross Profit, FIFO, or LIFO and why?Multiple choice question.FIFO because the newer, more expensive units are assumed to be sold first making cost of goods sold and gross profit higher than LIFOFIFO because the older, less expensive units are assumed to be sold first making Cost of Goods Sold lower and Gross Profit higher than LIFOLIFO because the newer, more expensive units are assumed to be sold first making cost of goods sold and gross profit higher than LIFOLIFO because the older, less expensive units are assumed to be sold first making cost of goods sold lower and gross profit higher than LIFO

Which is the best descirbe of the effect of using different inventory method during of the period of rising price, a Using the Last-In, First-Out (LIFO) method will result in higher ending inventory and higher cost of goods sold, thereby showing higher gross profit compared to the First-In, First-Out (FIFO) method. b Using the First-In, First-Out (FIFO) method will result in lower ending inventory and higher cost of goods sold, thereby showing lower gross profit compared to the Last-In, First-Out (LIFO) method. c Using the First-In, First-Out (FIFO) method will result in higher ending inventory and lower cost of goods sold, thereby showing higher gross profit compared to the Last-In, First-Out (LIFO) method. d Using the Weighted Average Cost (WAC) method will always yield the same ending inventory and cost of goods sold figures irrespective of whether prices are rising or falling.

The difference between the inventory valuation as reported under LIFO and the amount that would have been reported under FIFO is called the Blank______.Multiple choice question.cost of goods soldgross profitFIFO reserveLIFO reserve

Which of the following is an advantage of using LIFO in a period of rising costs?Multiple ChoiceResults in higher reported profitResults in lower cost of goods soldResults in higher ending inventoryResults in lower taxes

Assuming purchase costs are rising in a periodic inventory system, determine which of the statements below are correct regarding the cost of goods sold under FIFO, LIFO and weighted average cost flow methods.Multiple select question.Companies using FIFO will report the highest gross profit and net income.Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else being equal.Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.Companies using LIFO will report the smallest cost of goods sold.

Choose the statement which is correct. Assume that inventory prices are rising. A. The FIFO method gives the highest closing inventory figure in the statement of financial position. B. The LIFO method gives the highest closing inventory  figure in the statement of financial position. C. The FIFO method gives the lowest closing inventory figure in the statement of financial position. D. The LIFO method gives the lowest figure for cost of sales.